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Searching for Value

ConfusedBuying undervalued stocks in the markets can be a very good long-term investment strategy for many investors. However, the process can be very difficult sometimes and near impossible for the average investor. Meaning an investor that does not invest on a daily or weekly basis but who may own a 401k, IRA, Roth at their […]
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Wrapping up the 2019 Tax Season

It’s been a tough 2019 tax season. The recent changes in federal tax laws made this tax season more difficult than usual. One of the biggest challenges has been determining what a business or individual could take as a deduction or ordinary and necessary tax expense. For example, interest paid on home equity loans may or may not be deductible under the new tax laws of 2017. In some states, this valuable deduction is no longer a tax benefit for many taxpayers.

“The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan” (IRS.gov n.p.).

Although the intent of the law is clear, application could cause some confusion by homeowners that have refinanced their home mortgage many times over before passage of the new tax law. For complete guidance on how to calculate the correct interest rate for home mortgages, try IRS Publication 936, Mortgage Interest Deduction or submit our secure contact form with your specific tax question today.

Source: IRS.Gov

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Volatile Week Ahead!

1/28/2019 It looks like it is going to be a volatile week. There’s lots on the table to consider. Today marks the start of the IRS e-filing season and what may turn out to be a very tough month for the IRS. We are seeing many reports suggesting that parts of the agency may still […]
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Market Update

Market Update
12/27/2018
By: Rick Walter, CIO

 

Political uncertainty
It was a tough year to make any profits using our index-based approach to investing, as the markets continued to move downward in lockstep with political drama domestically and internationally. Our tech-heavy, simulated portfolios were no match for the widespread panic and fear that gripped the overall markets.

Dow, S&P 500 and Nasdaq sell-off
It’s hard to find a fund or asset manager that have not been affected by the continued market slide which started on September 21, 2018- (a market high). As the year wore on, nothing seemed to matter, as panic continued to grip the entire market causing many investors to sell otherwise very good positions in companies whose earnings were very strong in the previous quarter with many companies earning above analyst consensus and market expectations.

Continued Volatility in 2019
Based on my experience and analysis this intense sell-off is a combination of a structural selloff- stemming from the unintended consequences of the 2018 tax law, developing economic headwinds and political uncertainty in Washington (a perfect storm of events). These events and others will continue to rumble through the financial system and cause massive losses for many. We are expecting continued volatility and heavy selling to continue, through 2019 and possibly into 2020.

Don’t try to buy on the bounce because there isn’t one. Averaging down or up may be the only medicine of the day. We prefer that investors pause and not make any new investments currently. Other strategies may include moving to more liquid investments like treasuries until there is some type of real political leadership in Washington.
If you need to harvest capital losses for 2018 tax preparation, you should have no problem at all finding losses to write-off. There is plenty to go around.


Have a Happy New Year in 2019!!

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IRA Rollovers & Distributions

Using an IRA rollover, you can transfer  funds from a tax-deferred plan to an individual retirement account (IRA). If you roll funds directly to a traditional IRA, you won’t trigger current income taxes and penalties. The penalties on an early distribution from any tax-deferred retirement plan can run as high as 29% on the total […]
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Cost of Procrastination

Retirement is one area where procrastination can be particularly dangerous to your financial future. Procrastination costs money. It doesn’t pay to put off financial plans. Start taking concrete steps towards your financial goals. If you had decided to invest $10,000 at 8 percent 10 years ago, and another person waited 10 years and then invested […]
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Developing a Successful Investment Portfolio

By Rick Walter 5/21/2018 There are four basic steps that may enable you to develop a successful well-designed portfolio. These strategies can also carry over to your employer-sponsored and personal retirement plans as well. Step 1: Determine your Objectives and Time Horizon This is the amount of time that you have before you would like […]
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Benefits of A Roth IRA

By Rick Walter Considering savings is essential, but particularly with regards to retirement. Americans are living longer than ever before, and retirement is getting increasingly less affordable as living costs and inflation continue to grow. Several investment vehicles exist to assist you to save for your retirement like a Roth IRA. A Roth IRA is […]
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Facebook’s Comeuppance

By Rick Walter Facebook’s (FB) stock is being crushed by traders today as the stock takes it on the chin over the privacy data scandal that broke last week. The issue at hand is the uncertainty that surrounds the company in regards to how deep the problems are with how they collect, handle and sell […]
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